Despite a SA国际影视传媒済rimSA国际影视传媒� prediction from the Conference Board of Canada, observers remain optimistic about the NWT's economic potential.
As diamond mining winds down, workers will lose their jobs and leave the NWT, predicts the Conference Board of Canada in its latest economic outlook for the territories.
SA国际影视传媒淲e've faced these challenges before, but we've always managed our way through them and we'll work our way through this one,SA国际影视传媒� Finance Minister Robert C. McLeod said Wednesday.
The board's most recent economic outlook for the territories, released Monday, paints a bleak picture of the Northwest Territory's future.
All three operating diamond mines are set to close by 2035, states the think tank, and with waning diamond production, SA国际影视传媒渁lmost all sectors of the territory's economy will suffer.SA国际影视传媒�
(Dominion Diamonds announced in September, 2017 that a new cave mining method could extend operations at Ekati to 2042.)
SA国际影视传媒淔or now, the best years for the Northwest Territories are behind it,SA国际影视传媒� reads the report.
SA国际影视传媒淢ining is important to the NWT as a whole ... but we've got to make sure we support opportunities in regions,SA国际影视传媒� said McLeod.
SA国际影视传媒淭ourism, agriculture, manufacturing, the knowledge economy, we'll continue to support those in anyway possible.SA国际影视传媒�
The NWT mining industry is slowing down, states the report, with diamond production having peaked last year.
Less production will result in higher unemployment and increased migration out of the territory.
By 2035, nearly 1,300 mine workers who call NWT home are expected to lose their jobs.
Two metal mines set to open in the early 2020s will not offset losses from declining diamond production, according to the outlook.
Frame Lake MLA Kevin O'Reilly said for years, he has been pushing the government to diversify the economy.
SA国际影视传媒淥ur minister of Industry Tourism and Investment continues to, in my opinion, spend far too much time on mining and doesn't really have a broader view of a vision of sustainability,SA国际影视传媒� he said Wednesday.
But O'Reilly insisted he is SA国际影视传媒渘ot as pessimisticSA国际影视传媒� as the Conference Board of Canada, and pointed to opportunities for growth in the tourism and agriculture sectors.
SA国际影视传媒淭here's some really hopeful signs in our economy,SA国际影视传媒� he said.
The governor of the Bank of Canada expressed similar views when he was in Yellowknife on Tuesday.
SA国际影视传媒淚 think the best growth business is the tourism business,SA国际影视传媒� Stephen S. Poloz said during a press conference at the Explorer Hotel.
SA国际影视传媒�(Tourism) doesn't get as much hard analysis as the mining sector does, but it deserves it, because those folks come and they spend money and they enjoy themselves and their friends come.SA国际影视传媒�
David Connelly disagrees.
The owner of Ile Royale Enterprises, a Yellowknife consulting firm specializing in economic development opportunities related to the natural resource sector, said that to make up for losses in the mining economy, the growth that would need to happen in industries such as tourism, fishing, trapping, art, agriculture and manufacturing SA国际影视传媒渋s almost unimaginable.SA国际影视传媒�
The board also had forecasts for the territory's real gross domestic product SA国际影视传媒� the inflation-adjusted value of all the goods and services produced in NWT in a year.
It predicts the real GDP will shrink 2.9 per cent this year, and by an average of 1.1 per cent a year over the next two decades.
SA国际影视传媒淭hat's highly unusual in any economy,SA国际影视传媒� said Connelly.
He said it's time for politicians to shed their rose-coloured glasses and take a hard look at the Northwest Territories' economic prospects.
SA国际影视传媒淪o often politicians seem to say the center is rosy, everything's good, don't worry about it,SA国际影视传媒� said Connelly.
SA国际影视传媒淎t some point leadership requires them to face the issue square on and come up with a strategy, even if that strategy is going to be difficult.SA国际影视传媒�
Connelly believes federal, Indigenous, territorial and municipal leaders should collaborate on a bold, non-partisan strategy to SA国际影视传媒渃hange the investment climateSA国际影视传媒� in the Northwest Territories.
His suggestion: invest in a transmission line that would deliver large amounts of hydro power to the resource-rich Slave Geological Province.
When Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines, saw the Conference Board report, he felt SA国际影视传媒渄epressed.SA国际影视传媒�
SA国际影视传媒淵ou try hard to put the flags out and say these are the things that need to be done folks,SA国际影视传媒� said Hoefer.
He said opening up more land for development and settling land claims would offer potential investors more certainty.
SA国际影视传媒淲hen we see exploration here flat-lining for over ten years, where other jurisdictions are reaping the benefits of it, you go, 'this is really disappointing,'SA国际影视传媒� he said.
SA国际影视传媒淭he Conference Board of Canada report has really helped enunciate that.SA国际影视传媒�
